personal property manual 2012-2013 - nevada department of

Life Expectancy GuidelinesN E V A D A D E P A R T M E N T O F T A X A T I O N D i v i s i o n o f A s s e s s m e n t S t a n d a r d s
PERSONAL PROPERTY
MANUAL
2012-2013
D i v i s i o n o f A s s e s s m e n t S t a n d a r d s
Personal Property Manual
2012-2013
Department of Taxation Division of Assessment Standards 1550 E. College Parkway, Suite 115
Carson City, NV 89706 Phone 775.684.2100 Fax 775.684.2020
Adopted by the Nevada Tax Commission June 27, 2011
C O N T E N T S 2012-13 PERSONAL PROPERTY MANUAL
Introduction ..................................................................................................................................................................................iii
Exempt Property............................................................................................................................................................................iii
A Note on NAICS.........................................................................................................................................................................vi
Billboards..........................................................................................................................................................................................9
Special Properties...................................................................................................................................................................... 11
Short-Life Property...................................................................................................................................................................... 11
Computer-Integrated Machinery ............................................................................................................................................... 14
Computerized Equipment .......................................................................................................................................................... 14
Mobile or Manufactured Homes ...............................................................................................................................................16
Health Care and Social Assistance.............................................................................................................................................37
Other Services...............................................................................................................................................................................40
Appendix 'A' Nevada Revised Statutes and Nevada Administrative Code Related to Personal Property ....42
Appendix 'B' Methodology Used to Estimate Cost Indexes .......................................................................................52
Appendix 'C' Methodology Used to Estimate Expected Useful Life .......................................................................55
Appendix 'D' Exemptions from Property Taxes .............................................................................................................57
Exemptions from Property Taxes .............................................................................................................................................57
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Index..............................................................................................................................................................................................76
I N T R O D U C T I O N
2012-13 PERSONAL PROPERTY MANUAL
Personal property is defined in NRS 361.030, and includes (j) “all property of whatever kind or nature, except vehicles as defined in NRS 371.020, not included in the term “real estate.” Real estate is defined in NRS 361.035, and includes land, houses, buildings, fences, ditches, structures, erections, railroads, other improvements, and property rights. In 2010, the Nevada Tax Commission adopted regulations not yet codified in LCB File No. R039-10. Section 12 of the regulation defines fixture as “an item that was originally personal property which has been installed or attached to land or an improvement in a permanent manner.” The regulation goes on to describe a three-part test to determine whether an item has become a fixture. Section 24 states that “real property” has the meaning ascribed to it in NRS 361.035 and includes land, fixtures, improvements, on-site enhancements, and any rights, interests, benefits and privileges belonging or attached to the land. Further discussion on the fixture rule is included in Appendix E of this Manual. All references to statutes and regulations may be found in Appendix A of this Manual. E X E M P T P R O P E R T Y
NRS 361.050 through NRS 361.187 provide exemptions for assorted types of eligible property, including household goods; business inventories; property in transit; property owned by government entities, charitable organizations or veterans; and fine art for display. Additionally, NRS 361.228(1) provides that All intangible personal property is exempt from taxation, including, without limitation:
(a) Shares of stock, bonds, mortgages, notes, bank deposits, book accounts such as an acquisition adjustment and credits, and securities and chooses in action of like character; and
(b) Goodwill, customer lists, contracts and contract rights, patents, trademarks, trade names, custom computer programs, copyrights, trade secrets, franchises and licenses.
A complete discussion of exemptions and a cross-reference table is included in Appendix D of this manual. P R O C E D U R E S F O R D E T E R M I N I N G T A X A B L E V A L U E
To calculate the taxable value of personal property, NAC 361.1371 and NAC 361.1375 require the assessor to determine four input values: Acquisition cost Acquisition year Expected life, and Cost conversion factor
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The personal property declaration submitted by the taxpayer pursuant to NRS 361.265 should list the acquisition cost for each item and the year acquired. The declaration should also contain sufficient information to identify each item’s industry classification (NAICS code), property type, and corresponding expected life.
iv
Readers may also use the alphabetical listing of personal property by general type found in the Index of this Manual to locate the appropriate expected life for individual items. Because some industries use similar types of business equipment, like desks or computers, readers should select the NAICS classification that best describes the subject account.
Besides these NAICS Life Expectancy Guidelines, the Personal Property Manual also contains a Special Properties section with descriptions and asset life tables for: Short-life property subject to rapid obsolescence; Items similar to real property classified as personal, like mobile and manufactured homes or billboards; Generic business equipment found across many industries, like furniture and trade fixtures or
computers; and Specialized assets like high-tech medical diagnostic equipment whose economic lives differ
substantially from industry norms. Cost Conversion Factors Based on the acquisition cost, acquisition year and expected life for an item, the assessor should select the appropriate Cost Conversion Factor from the tables published in the Personal Property Manual. Cost Conversion Factors contain three components: Cost Index, Age and Percent Good. To satisfy the requirement of NAC 361.375(2) the department develops Paasche indexes for manufactured homes, billboards, and business equipment derived from pertinent Marshall Swift comparative cost multiplier tables, the West Urban, All Items CPI index, and the PPI Index for Capital Equipment, Stage of Processing. These indexes inflate replacement cost new expressed in acquisition year nominal dollars into replacement cost new expressed in current year nominal dollars. Cost indexes do not apply to mobile and manufactured homes first sold prior to July 1, 1982, whose taxable value always equals 20% of their original selling price. Cost indexes for equipment and billboards do not accrue beyond their expected lives; such items have a constant residual cost conversion factor equal to their residual percent good multiplied by the residual year cost index. To comply with NAC 361.130(2)(b), however, cost indexes do apply to mobile and manufactured homes first sold on or after July 1, 1982. Even though mobile homes fully depreciate after sixteen years, applying the cost index to the years between the current year minus 16 and 1982 may actually produce a temporary increase in taxable value. NAC 361.1375(4)&(5) specify declining balance depreciation with a 5% residual (salvage value) for all property types except manufactured homes and billboards, which use straight line depreciation. Unless the Department has conducted a market study or has otherwise obtained information which indicates a different residual amount, the Department currently relies on a double declining balance method for all equipment and a 5% residual; 5% per year depreciation with a 20% residual for mobile homes (16 year life), and 1.5% per year depreciation with a 25% residual for billboards (50 year life). Percent good equals (1 - accrued depreciation) for the given asset age, where age equals the current year (first year of the biennium) minus the acquisition year. For the 2012-13 fiscal year for example, an asset acquired in 2005 has an age of seven years, a manufactured home first sold in 1992 has an age of twenty years. Although one could calculate depreciation directly, the tables reduce this process to a simple lookup.
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To calculate taxable value using the Personal Property Manual, the assessor completes three steps:
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Select the appropriate expected life table, Look up the cost conversion factor for the given acquisition year and, Multiply the acquisition cost by the indicated cost conversion factor.
As usual, assessed value equals 35% of taxable value. A N O T E O N N A I C S The North American Industry Classification System (NAICS) replaced the Standard Industrial Classification (SIC) in 1997. According to the US Census Bureau FAQ web page, the North American Industry Classification System (NAICS, pronounced Nakes) was developed under the direction and guidance of the Office of Management and Budget (OMB) as the standard for use by Federal statistical agencies in classifying business establishments for the collection, tabulation, presentation, and analysis of statistical data describing the U.S. economy. Use of the standard provides uniformity and comparability in the presentation of these statistical data. NAICS is based on a production-oriented concept, meaning that it groups establishments into industries according to similarity in the processes used to produce goods or services. NAICS in the United States was designed for statistical purposes. However, NAICS is frequently used for various administrative, regulatory, contracting, taxation, and other non-statistical purposes Various agencies and organizations have also begun using NAICS as a basis for their procurement programs, requiring that a NAICS code be provided for each good or service to be procured. NAICS is an industry classification system, not a product classification system, and therefore neither intended nor well suited for this purpose. The North American Product Classification System (NAPCS) is currently under development under the direction and guidance of OMB and also in collaboration with Canada and Mexico. This system is intended to incorporate all of the outputs/ products of the industries defined in NAICS, with "product" referring to goods produced and services provided. For statistical purposes, a business establishment is assigned one NAICS code, based on its primary business activity. Once NAPCS is complete, multiple NAPCS codes could be linked to any one establishment to indicate its various products. Although NAICS does not replace the property type codes currently used by assessors, it does provide a handy reference for users of the Personal Property Manual who need to classify and assign lives to their assets. For additional information and complete tables, readers may consult the US Census Bureau website http://www.census.gov/epcd/naics02/. M A N U A L F E A T U R E S For the convenience of our readers, the Personal Property Manual offers two special features to facilitate its use in E-book (.pdf) format. Hyperlinks, which are similar to links on web pages. Bookmarks, which make it easy to navigate within this document.
2 0 1 2 - 1 3 C O S T C O N V E R S I O N F A C T O R S 2012-13 PERSONAL PROPERTY MANUAL
T H R E E ( 3 ) Y E A R L I F E
YE
AR COST PERCENT PERCENT CONVERSION ACQUIRED AGE INDEX DEPRECIATION GOOD FACTOR
2012 0 1.00 0.0 100.0 1.0000 2011 1 1.00 67.0 33.0 0.3300 2010 2 1.00 89.0 11.0 0.1100 2009 3 1.01 95.0 5.0 0.0505
Residual 1.01 95.0 5.0 0.0505
THREE (3) YEAR LIFE
1
F I V E ( 5 ) Y E A R L I F E
R
ACQUIRED AGE INDEX DEPRECIATION GOOD FACTOR
2012 0 1.00 0.0 100.0 1.0000
2011 1 1.00 40.0 60.0 0.6000 2010 2 1.00 64.0 36.0 0.3600
2009 3 1.01 78.0 22.0 0.2222
2008 4 1.03 87.0 13.0 0.1339
2007 5 1.07 95.0 5.0 0.0535
esidual 1.07 95.0 5.0 0.0535
FIVE (5) YEAR LIFE
2
S E V E N ( 7 ) Y E A R L I F E
YE
2012 0 1.00 0.0 100.0 1.0000 2011 1 1.00 29.0 71.0 0.7100 2010 2 1.00 49.0 51.0 0.5100 2009 3 1.01 64.0 36.0 0.3636 2008 4 1.03 74.0 26.0 0.2678 2007 5 1.07 81.0 19.0 0.2033 2006 6 1.10 88.0 12.0 0.1320 2005 7 1.14 95.0 5.0 0.0570
Residual 1.14 95.0 5.0 0.0570
SEVEN (7) YEAR LIFE
3
T E N ( 1 0 ) Y E A R L I F E YE
2012 0 1.00 0.0 100.0 1.0000 2011 1 1.00 20.0 80.0 0.8000 2010 2 1.00 36.0 64.0 0.6400 2009 3 1.01 49.0 51.0 0.5151 2008 4 1.03 59.0 41.0 0.4223 2007 5 1.07 67.0 33.0 0.3531 2006 6 1.10 74.0 26.0 0.2860 2005 7 1.14 79.0 21.0 0.2394 2004 8 1.19 84.0 16.0 0.1904 2003 9 1.21 90.0 10.0 0.1210 2002 10 1.23 95.0 5.0 0.0615
Residual 1.23 95.0 5.0 0.0615
TEN YEAR LIFE
200% DECLINING BALANCE
4
F I F T E E N ( 1 5 ) Y E A R L I F E
YE
2012 0 1.00 0.0 100.0 1.0000 2011 1 1.00 13.0 87.0 0.8700 2010 2 1.00 25.0 75.0 0.7500 2009 3 1.01 35.0 65.0 0.6565 2008 4 1.03 44.0 56.0 0.5768 2007 5 1.07 51.0 49.0 0.5243 2006 6 1.10 58.0 42.0 0.4620 2005 7 1.14 63.0 37.0 0.4218 2004 8 1.19 68.0 32.0 0.3808 2003 9 1.21 72.0 28.0 0.3388 2002 10 1.23 76.0 24.0 0.2952 2001 11 1.24 80.0 20.0 0.2480 2000 12 1.26 84.0 16.0 0.2016 1999 13 1.29 87.0 13.0 0.1677 1998 14 1.30 91.0 9.0 0.1170 1997 15 1.31 95.0 5.0 0.0655
Residual 1.31 95.0 5.0 0.0655
15 YEAR LIFE
5
T W E N T Y ( 2 0 ) Y E A R L I F E
Y
EAR COST PERCENT PERCENT CONVERSION ACQUIRED AGE INDEX DEPRECIATION GOOD FACTOR
2012 0 1.00 0.0 100.0 1.0000 2011 1 1.00 10.0 90.0 0.9000 2010 2 1.00 19.0 81.0 0.8100 2009 3 1.01 27.0 73.0 0.7373 2008 4 1.03 34.0 66.0 0.6798 2007 5 1.07 41.0 59.0 0.6313 2006 6 1.10 47.0 53.0 0.5830 2005 7 1.14 52.0 48.0 0.5472 2004 8 1.19 57.0 43.0 0.5117 2003 9 1.21 61.0 39.0 0.4719 2002 10 1.23 65.0 35.0 0.4305 2001 11 1.24 69.0 31.0 0.3844 2000 12 1.26 72.0 28.0 0.3528 1999 13 1.29 75.0 25.0 0.3225 1998 14 1.30 78.0 22.0 0.2860 1997 15 1.31 80.0 20.0 0.2620 1996 16 1.33 83.0 17.0 0.2261 1995 17 1.36 86.0 14.0 0.1904 1994 18 1.39 89.0 11.0 0.1529 1993 19 1.43 92.0 8.0 0.1144 1992 20 1.46 95.0 5.0 0.0730
Residual 1.46 95.0 5.0 0.0730
20 YEAR LIFE
6
T H I R T Y ( 3 0 ) Y E A R L I F E
YE
7
2012 0 1.00 0.0 100.0 1.0000 2011 1 1.00 7.0 93.0 0.9300 2010 2 1.00 13.0 87.0 0.8700 2009 3 1.01 19.0 81.0 0.8181 2008 4 1.03 24.0 76.0 0.7828 2007 5 1.07 29.0 71.0 0.7597 2006 6 1.10 34.0 66.0 0.7260 2005 7 1.14 38.0 62.0 0.7068 2004 8 1.19 42.0 58.0 0.6902 2003 9 1.21 46.0 54.0 0.6534 2002 10 1.23 50.0 50.0 0.6150 2001 11 1.24 53.0 47.0 0.5828 2000 12 1.26 56.0 44.0 0.5544 1999 13 1.29 59.0 41.0 0.5289 1998 14 1.30 62.0 38.0 0.4940 1997 15 1.31 64.0 36.0 0.4716 1996 16 1.33 67.0 33.0 0.4389 1995 17 1.36 69.0 31.0 0.4216 1994 18 1.39 71.0 29.0 0.4031 1993 19 1.43 73.0 27.0 0.3861 1992 20 1.46 75.0 25.0 0.3650 1991 21 1.49 77.0 23.0 0.3427 1990 22 1.54 79.0 21.0 0.3234 1989 23 1.61 81.0 19.0 0.3059 1988 24 1.68 83.0 17.0 0.2856 1987 25 1.74 85.0 15.0 0.2610 1986 26 1.78 87.0 13.0 0.2314 1985 27 1.81 89.0 11.0 0.1991 1984 28 1.86 91.0 9.0 0.1674 1983 29 1.92 93.0 7.0 0.1344 1982 30 1.96 95.0 5.0 0.0980
Residual 1.96 95.0 5.0 0.0980
30 YEAR LIFE
NEVADA DEPARTMENT OF TAXATION
M O B I L E H O M E S S O L D O N O R A F T E R J U L Y 1 , 1 9 8 2
YE
AR COST PERCENT PERCENT CONVERSION FIRST SOLD AGE INDEX DEPRECIATION GOOD FACTOR
2012 0 1.00 0.0 100.0 1.0000 2011 1 1.00 5.0 95.0 0.9500 2010 2 1.00 10.0 90.0 0.9000 2009 3 1.05 15.0 85.0 0.8925 2008 4 1.04 20.0 80.0 0.8320 2007 5 1.06 25.0 75.0 0.7950 2006 6 1.08 30.0 70.0 0.7560 2005 7 1.08 35.0 65.0 0.7020 2004 8 1.14 40.0 60.0 0.6840 2003 9 1.23 45.0 55.0 0.6765 2002 10 1.27 50.0 50.0 0.6350 2001 11 1.32 55.0 45.0 0.5940 2000 12 1.33 60.0 40.0 0.5320 1999 13 1.34 65.0 35.0 0.4690 1998 14 1.34 70.0 30.0 0.4020 1997 15 1.35 75.0 25.0 0.3375 1996 16 1.36 80.0 20.0 0.2720 1995 17 1.37 80.0 20.0 0.2740 1994 18 1.42 80.0 20.0 0.2840 1993 19 1.50 80.0 20.0 0.3000 1992 20 1.52 80.0 20.0 0.3040 1991 21 1.53 80.0 20.0 0.3060 1990 22 1.58 80.0 20.0 0.3160 1989 23 1.66 80.0 20.0 0.3320 1988 24 1.67 80.0 20.0 0.3340 1987 25 1.73 80.0 20.0 0.3460 1986 26 1.79 80.0 20.0 0.3580 1985 27 1.84 80.0 20.0 0.3680 1984 28 1.92 80.0 20.0 0.3840 1983 29 1.86 80.0 20.0 0.3720 1982 30 1.82 80.0 20.0 0.3640
16 YEAR STRAIGHT LINE
B I L L B O A R D S
YEAR COST PERCENT PERCENT CONVERSION ACQUIRED AGE INDEX DEPRECIATION GOOD FACTOR
2012 0 1.00 0.0 100.0 1.0000 2011 1 1.00 1.5 98.5 0.9850 2010 2 1.00 3.0 97.0 0.9700 2009 3 1.01 4.5 95.5 0.9646 2008 4 1.03 6.0 94.0 0.9682 2007 5 1.06 7.5 92.5 0.9805 2006 6 1.10 9.0 91.0 1.0010 2005 7 1.15 10.5 89.5 1.0293 2004 8 1.22 12.0 88.0 1.0736 2003 9 1.27 13.5 86.5 1.0986 2002 10 1.29 15.0 85.0 1.0965 2001 11 1.31 16.5 83.5 1.0939 2000 12 1.33 18.0 82.0 1.0906 1999 13 1.37 19.5 80.5 1.1029 1998 14 1.39 21.0 79.0 1.0981 1997 15 1.40 22.5 77.5 1.0850 1996 16 1.43 24.0 76.0 1.0868 1995 17 1.46 25.5 74.5 1.0877 1994 18 1.50 27.0 73.0 1.0950 1993 19 1.54 28.5 71.5 1.1011 1992 20 1.59 30.0 70.0 1.1130 1991 21 1.62 31.5 68.5 1.1097 1990 22 1.66 33.0 67.0 1.1122 1989 23 1.71 34.5 65.5 1.1201 1988 24 1.77 36.0 64.0 1.1328 1987 25 1.83 37.5 62.5 1.1438 1986 26 1.86 39.0 61.0 1.1346 1985 27 1.89 40.5 59.5 1.1246 1984 28 1.93 42.0 58.0 1.1194
BILLBOARDS
9
10
YE
1983 29 1.99 43.5 56.5 1.1244 1982 30 2.04 45.0 55.0 1.1220 1981 31 2.15 46.5 53.5 1.1503 1980 32 2.34 48.0 52.0 1.2168 1979 33 2.59 49.5 50.5 1.3080 1978 34 2.86 51.0 49.0 1.4014 1977 35 3.11 52.5 47.5 1.4773 1976 36 3.30 54.0 46.0 1.5180 1975 37 3.50 55.5 44.5 1.5575 1974 38 3.97 57.0 43.0 1.7071 1973 39 4.38 58.5 41.5 1.8177 1972 40 4.66 60.0 40.0 1.8640 1971 41 4.91 61.5 38.5 1.8904 1970 42 5.20 63.0 37.0 1.9240 1969 43 5.47 64.5 35.5 1.9419 1968 44 5.76 66.0 34.0 1.9584 1967 45 6.01 67.5 32.5 1.9533 1966 46 6.34 69.0 31.0 1.9654 1965 47 6.57 70.5 29.5 1.9382 1964 48 6.75 72.0 28.0 1.8900 1963 49 6.91 73.5 26.5 1.8312 1962 50 7.07 75.0 25.0 1.7675
Residual 7.07 75.0 25.0 1.7675
50 YEAR STRAIGHT LINE
S P E C I A L P R O P E R T I E S 2012-13 PERSONAL PROPERTY MANUAL
S H O R T - L I F E P R O P E R T Y Expected Life ........................................................................................................................Three (3) years Short-Life Property consists of items prone to rapid obsolescence or susceptible to breakage, loss or abnormal wear and tear. Examples include:
Linens Uniforms Glassware Pots, Pans, Utensils Barware Motion Picture Prints Silverware Rental Video Tapes, DVDs, CDs
Jigs, Dies, and Molds Patterns, jigs, dies and molds fall into this category when the type of product manufactured, industry class, use of caustic chemicals, or physical deterioration associated with production volume act to shorten their useful lives and thus require their frequent replacement. Examples include injection molds for plastic parts of high- tech devices or dies used in heavy equipment production. Ideally, assessors should identify the industrial application and determine the actual service lives of equipment used in current production from owner declarations or surveys of average lives from individual manufacturers before classifying such property as Short-life. Digital Cameras Digital cameras fall into basic two categories: professional and snapshot. In recent years, consumer-grade, digital snapshot and video cameras have become a generic commodity. They offer small, flimsy LCD monitors, low image resolution, and lack advanced features like interchangeable lenses. Only snapshot cameras qualify as Short-life property. I N F O R M A T I O N S Y S T E M S
Life expectancies for computers and peripherals fall into four broad categories: PCs and associated peripherals..........................................................................................Three (3) years Mini-computers (AS 400, VAX) ............................................................................................Three (3) years Servers .................................................................................................................................... Five (5) years Mainframe computers (IBM 360).........................................................................................Seven (7) years
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An information system consists of computers and peripheral equipment used for processing normal business transactions and the maintenance, retrieval, and analysis of business records.
A computer functions as a programmable, electronically-activated device capable of accepting information, applying prescribed processes to the information, and supplying the results of these processes with or without human intervention. It usually contains a central processing unit that provides storage, logic, arithmetic, and control capabilities. Observe that adding machines and electronic calculators do not fall into this category. To assign appropriate expected lives to computing equipment, assessors need to recognize the differences among mainframes, servers, client computers and personal computers. Recent advances in computing technology make differentiating mainframes, minicomputers and servers difficult, especially for laymen. When in doubt, consult manufacturer marketing divisions, service literature, or websites to determine how they classify their various product lines. A mainframe serves as a high-performance computer used for large-scale computing environments that demand greater availability and security than smaller-scale machines can offer. Banks, government agencies, insurance companies, credit card companies, and other organizations that perform massive transaction processing typically use mainframe systems. It is also possible to obtain a server which contains many "blades," each of which is used for a single application.1 Currently, there are blade servers that have as many as 160 blades. Mainframes should not be confused with servers, or with a server that uses software to spin off many virtual servers, each with its own computer operating system. Servers usually cost considerably more than personal computers, have more processing power and substantial amounts of computer memory. They are therefore significantly more expensive than most personal computers and they are often kept in service longer than personal computers. Servers are often dedicated to specific tasks like
Transaction processing (On Line Transaction or OLT servers) print queuing and printing (print server) running mission critical software, clustering, fail-over and load-balancing (application server) audio and video transmission (audio video server) exchanging short bursts of written information and opinions in an environment that offers real-time
discussions (chat servers) sending and receiving faxes without using fax machines (fax server) File Transfer Protocol – moving files between computers while providing security and, organization,
and transfer control (FTP server) Historically, mainframes have been associated with centralized rather than distributed computing, although that distinction has blurred as smaller computers become more powerful and mainframes become more multi- purpose. Today, mainframes can serve both distributed users and smaller servers in computing networks. Interestingly, a mainframe actually resides within a server box. A key distinguishing feature of a mainframe is that it takes computing power away from end users and puts it in a central location. Another way to visualize a mainframe is to think of the computer as a super server, with multiple operating systems. 1 A major advantage of a blade server is that it dramatically reduces cabling requirements.
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Here is a link to the Family Tree And Chronology of some of the older IBM Mainframes. This link will take you to the IBM page for System Z Mainframes. By comparison, minicomputers are stand-alone computers (computer systems with attached terminals and other devices) sold to small and mid-size businesses for general business applications and to large enterprises for department-level operations. In recent years, the minicomputer has evolved into the "mid-range server" and is part of a network. IBM's AS/400e is a good example. Peripheral equipment consists of the auxiliary machines which are designed to be placed under the control of a central processing unit. Peripheral equipment may include card readers, card punches, mass storage units, paper tape equipment, keypunches, data-entry devices, teleprinters, terminals, tape drives, disc drives, disc files, disc packs, visual image projector tubes, card sorters, plotters, collators, small inkjet printers, small laser printers, and small desktop all-in-one devices (e.g. printer/fax/scanner combination) that are sold as commodities in retail outlets and which are rapidly replaced as faster machines with new features are added. Although one could classify computers by processor architecture, number of users supported, total system throughput, etc, ultimately the classification boils down to total system cost and the total time required to amortize the assets. Again, taxpayer records that reveal the actual service lives and disposition values of their own data processing equipment provide the best source of verifiable market data. T A X A B L E S O F T W A R E ( N O T A S S O C I A T E D W I T H C O M P U T E R - I N T E G R A T E D M A C H I N E R Y ) Taxable Software not associated with computer-integrated machinery................... Three (3) - year life Nevada law treats standard, prewritten software programs as tangible personal property.2 A standard prewritten program, often called canned or off-the-shelf software, means a generic application not originally developed and produced for a specific user. This includes any programs, procedures, rules, and a documentation pertaining to the operation of a computer system. Custom software programs consist of original, one-of-a-kind computer applications developed under contract exclusively for the particular requirements of a specific user. Custom computer programs qualify as exempt intangible personal property pursuant to NRS 361.228.
ssociated
2 According to the IRS, “Computer software is not a section 197 intangible even if acquired in connection with the acquisition of a business, if it meets all of the following tests.
It is readily available for purchase by the general public. It is subject to a nonexclusive license. It has not been substantially modified.
If the software meets the tests above, it can be depreciated and may qualify for the section 179 expense deduction and the special depreciation allowance (if applicable), discussed later. http://www.irs.gov/publications/p225/ch07.html
C O M P U T E R - I N T E G R A T E D M A C H I N E R Y Expected Life: ..................................................................................................................... Seven (7) years Computer integrated machinery, including its integrated programming or software, exhibits the following characteristics:
The machinery and computer sell as a single unit The machinery cannot operate without the computer and the computer cannot perform functions
outside the machinery. The components of the computer form an integral, structural part of the equipment itself; it is not
economically or functionally feasible to replace the computer without replacing the entire machine. For income tax purposes, depreciation accrues to the total cost of the machine and computer as a unit. The capabilities of the machine cannot be expanded by substituting a more complex computer for the
original. Embedded programming or pre-loaded software designed primarily for the function of the machine into
which it is integrated runs the computer. Examples of computer-integrated machinery include computer driven mills; computer integrated manufacturing machinery; computer integrated fabrication machinery; computerized machine lathes; and computerized assembly machinery. C O M P U T E R I Z E D E Q U I P M E N T Expected Life:
Free-standing computer system....................................................................................Seven (7) years or Generic personal computer................................................................................................. Three (3) years Equipment component ....................................................................................... NAICS industry class life This category includes machines controlled by computersthat sell as a separate unit from the machine and can perform additional functions outside the machine. The assessor should assign expected lives to the two components separately; the computer equipment has the same expected life as similar computer equipment; the machinery has the expected life assigned to its specific industry.
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H I G H - T E C H M E D I C A L D I A G N O S T I C E Q U I P M E N T
Expected Life: ........................................................................................................................ Five (5) years High-tech medical diagnostic equipment exhibits these characteristics:
Used in medical or dental facilities; Subject to accelerated functional and economic obsolescence caused by rapid technological
development. Examples include: Cardiac Ultrasonic Scanners CAT (Comp Tomography) Scanners Diagnostic Ultrasounds General Ultrasonic Scanners MRI (Magnetic) Scanners Nuclear Medicine Cameras
OB/GYN Ultrasonic Scanners PET Scanners (Positron Emission) All Portable Units of Same H I G H - T E C H E L E C T R O N I C M E D I C A L E Q U I P M E N T Expected Life:
Cardiac laser units ...............................................................................................................Three (3) years Other items ..........................................................................................................................Seven (7) years High-tech medical diagnostic equipment exhibits these characteristics:
Used in medical or dental facilities; Subject to accelerated functional and economic obsolescence caused by rapid technological
development. Examples include patient monitors of all kinds:
Anesthesia Monitors Apnea Monitors Blood Pressure Monitors Chart Recorders Defibs Dopplers EEG Machines EKG Machines External Pace Makers
Heart Rate DevicesError! Bookmark not defined. Medical Laser Units Neurological Monitors Oximeters Oxygen Analyzers Spirometers Systolic Monitors Temperature Monitors
O F F I C E F U R N I T U R E , R E T A I L S A L E S E Q U I P M E N T , O T H E R This category includes furniture and equipment that can be found across industries. Description Life in Years Air Conditioners .......................................................................................................................................... 15 Air Conditioners, Window ............................................................................................................................ 7 Cash Registers (electronic) ............................................................................................................................. 7 Coin-wrap Equipment ................................................................................................................................. 15 Copy and Duplicating Machines .................................................................................................................. 5 Cabinets and Shelving................................................................................................................................ 15 Check-out Counters.................................................................................................................................... 15 Data Processing Equipment (See Also Information Systems) ........................................................................... 7 Décor............................................................................................................................................................ 15 Displays, Cases, and Racks ....................................................................................................................... 15 Mailing Machines .......................................................................................................................................... 7 Office Furniture (Desks, Chairs, Filing Cabinets).............................................................................................. 15 Office Kitchen Appliances (Microwave ovens, refrigerators) ........................................................................... 15 POS – Point-of-Sale Computer Systems..................................................................................................... 7 Signs3 (Other than billboards and electronic)..................................................................................................... 15 Signs, Electronic ........................................................................................................................................... 7 Sound Systems (background and public address) ............................................................................................. 7 M O B I L E O R M A N U F A C T U R E D H O M E S
This section applies only to mobile or manufactured homes classified as personal property. Pursuant to NRS 361.561, those units identified as a "travel trailer," "utility trailer" and "van conversion," in chapter 482 of NRS and any other vehicle required to be registered with the department of motor vehicles and public safety are subject to property tax unless registered and taxed pursuant to Chapter 371 of NRS. Such unregistered units and vehicles must be taxed in the manner provided in NRS 361.562 to 361.5644, inclusive. The sticker issued pursuant to NRS 361.5643 must be affixed to a mobile or manufactured home in such a way that the sticker is clearly visible from the street. The window decal is not required for licensed mobile units or on units considered real property and may be issued at the option of the county assessor. NRS 361.325(3) segregates mobile homes into two different categories for assessment purposes based on age. Mobile homes sold on or after July 1, 1982 shall be classified according to those factors which most closely determine their useful lives. In establishing the value of other mobile homes, the commission shall begin with the retail selling price and depreciate it by 5 percent per year, but not below 20 percent of its original
16
3 See Appendix F to determine whether signs are real or personal property.
17
amount. The assessment ratio in all cases is 35 percent of the computed taxable values. See NAC 361.130 for additional information on the calculation of value for mobile homes. Depreciation schedules and cost conversion factors apply to the 2012-13 secured and unsecured tax rolls. The 2012-13 Cost Conversion Index for Mobile or Manufactured Homes appears on page 8 of this Manual.
B I L L B O A R D S NRS 361.013 defines a billboard as ". . . a sign that directs attention to a business, commodity, service, entertainment or attraction that is sold, offered or exists at a location other than the premises on which the sign is located." NRS 361.227 requires that depreciation of a billboard must be calculated at 1.5 percent of the cost of replacement for each year after the year of acquisition of the billboard, up to a maximum of 50 years. Additional information on the calculation of billboards may be found in NAC 361.1305. Depreciation schedules and cost conversion factors apply to the 2012-2013 secured and unsecured tax rolls. The 2012-13 Cost Conversion Index for Billboards may be found on pages 9 and 10 of this manual.
2012-13 PERSONAL PROPERTY MANUAL
NAICS Industry Code Description Life in Years
1 1 A G R I C U L T U R E A N D F O R E S T R Y
111 Crop Production .............................................................................................. 15
Personal property includes machinery and equipment such as tractors, combines, hay balers, forage harvesters, unlicensed farm vehicles including utility trailers, wagons and utensils used to grow crops mainly for food and fiber. The subsection comprises establishments, such as farms, orchards, groves, greenhouses, and nurseries, primarily engaged in growing crops, plants, vines, or trees (including Christmas trees) and their seeds.
Itemized Equipment
Seed cleaning machinery and equipment...........................................................................20
Seed cleaning equipment – portable ..................................................................................10
112 Animal Production .......................................................................................... 15
Personal property includes machinery and equipment used to raise or fatten animals for the sale of animals or animal products. The subsection comprises establishments, such as ranches, farms, and feedlots primarily engaged in keeping, grazing, breeding, or feeding animals. These animals are kept for the products they produce or for eventual sale.
Itemized Equipment
11212 Dairy Production.............................................................................................15
113 Forestry and Logging ...................................................................................... 15
Personal property includes machinery and equipment used to: (1) cut timber; (2) cut and transport timber; and (3) produce wood chips in the field, including stationary saw mills, skidders, and log loaders.
Itemized Equipment
18
tyy..
19
2111 Oil and Gas Extraction..................................................................................... 20
Personal property used in oil and gas extraction are used to explore for crude petroleum and natural gas. A typical example of personal property in this category would include inventory and spare parts.
Itemized Equipment
Bolted and fiberglass tanks................................................................................................ 15
LACT units, metering devices, manifolds .......................................................................... 15
Motors, engines, drive units .............................................................................................. 10
Secondary recovery (injection pumps, re-pressure equipment) ........................................ 15
Transformers .................................................................................................................... 30
2122 Metal Ore Mining ............................................................................................. 15
Personal property used in developing the mine site, mining or quarrying dimension stone. A typical example of personal property in this category would include inventory and spare parts.
Itemized Equipment
2123 Nonmetallic mineral mining and quarrying .................................................... 15
Personal property used in developing the mine site, mining or quarrying dimension stone. A typical example of personal property in this category would include inventory and spare parts.
* Heavy use is defined as in operation for more than one shift per day, seven days a week. Mining mobile equipment eligible for this category includes haul packs, loaders, shovels, dozers, graders, backhoes, drilling trucks, and excavators.
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20
2 2 U T I L I T I E S
2211 Electric Power Generation, Transmission, and Distribution ......................... 30
Personal property used in generating, transmitting, and/or distributing electric power. A typical example of personal property in this category would include inventory and spare parts.
2212 Natural Gas Distribution.................................................................................. 30
Personal property used in (1) operating gas distribution systems (e.g., mains, meters); (2) establishments known as gas marketers that buy gas from the well and sell it to a distribution system; (3) establishments known as gas brokers or agents that arrange the sale of gas over gas distribution systems operated by others; and (4) establishments primarily engaged in transmitting and distributing gas to final consumers. A typical example of personal property in this category would include inventory and spare parts.
2213 Water, Sewage, and Other Systems ................................................................. 30
Personal property used in establishments primarily engaged in operating water treatment plants and/or operating water supply systems. A typical example of personal property in this category would include inventory and spare parts.
221339 Steam and Air-Conditioning Supply ............................................................... 30
Personal property used in providing steam, heated air, or cooled air. A typical example of personal property in this category would include inventory and spare parts.
2 3 C O N S T R U C T I O N
236 Construction of Buildings ................................................................................ 15
237 Heavy and civil engineering construction ...................................................... 15
238 Specialty Trade construction............................................................................ 15
Personal property used primarily in the construction of buildings, major engineering projects such as highways and dams, and specialty trades such as pouring concrete, site preparation, plumbing, painting, and electrical work. Includes fixed load and mobile equipment such as:
Air compressors Motor graders/leveling graders
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Air drills Paving equipment Asphalt plants Portable shop Asphalt spreaders Portable storage bins Backhoe/loaders Portable storage tanks Carryalls Power hoists Cement mixers/spreaders Power shovels Crusher/crushing plant Roadrollers/sheepsfoot rollers Crawler cranes/ tractors Sand classifiers and drags Ditchers/diggers Scarifiers and rollers Earthmoving scrapers Scrap metal balers Excavators Scrubber screens and plant feeders Fork lifts Welder Front end loaders / bucket loaders Wiring Equipment Mixmobiles
Other Itemized Equipment
Cranes Bridge .............................................................................................................................. 20
Power tools (saws, drills, etc.) ............................................................................................. 7
Hand tools............................................................................................................................ 7
Mobile equipment, heavy use* ........................................................................................... 7
* Heavy use is defined as in operation for more than one shift per day, seven days a week
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3 1 M A N U F A C T U R I N G
311 Food ................................................................................................................. 15
Personal property used in this industry transform livestock and agricultural products into products for intermediate or final consumption. The food products manufactured in these establishments are typically sold to wholesalers or retailers for distribution to consumers, but establishments primarily engaged in retailing bakery and candy products made on the premises not for immediate consumption are included. Includes equipment such as walk-in coolers, freezers and other refrigeration, grain tanks, bottling and canning equipment in the following industries:
3111 Animal food manufacturing
3114 Fruit and vegetable preserving and specialty food manufacturing
31141 Frozen food manufacturing
3115 Dairy product manufacturing
3117 Seafood product preparation and packaging
3118 Bakeries and tortilla manufacturing
311811 Retail bakeries
311812 Commercial bakeries
Itemized Equipment
Cereal manufacturing ........................................................................................................20
Mechanical portion of packing and sorting line equipment 2nd view ...................................30
Electronic portion of line equipment* ..................................................................................10
312 Beverage and Tobacco Product Manufacturing.............................................. 15
Personal property used to manufacture beverages and tobacco products. Please note that ice manufacturing, while not a beverage, is included with nonalcoholic beverage manufacturing because it uses the same production process as water purification.
* If electronic component’s original cost cannot be separated from other line assets, use 20 years.
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Manufacturing processes include:
313 Textile Mills ...................................................................................................... 15
Personal property used in the main processes in this industry which include preparation and spinning of fiber, knitting or weaving of fabric, and the finishing of the textile.
314 Textile Product ................................................................................................ 15
Personal property used in creation of textile products. With a few exceptions, processes used in this industry are generally cut and sew (i.e., purchasing fabric and cutting and sewing to make non-apparel textile products, such as sheets and towels).
315 Apparel Manufacturing ................................................................................... 15
Personal property used in the Apparel Manufacturing industry. This industry includes a diverse range of establishments manufacturing full lines of ready-to-wear apparel and custom apparel: apparel contractors, performing cutting or sewing operations on materials owned by others; jobbers performing entrepreneurial functions involved in apparel manufacture; and tailors, manufacturing custom garments for individual clients.
316 Leather and Allied Product Manufacturing .................................................... 15
Personal property used to transform hides into leather by tanning or curing and fabricating the leather into products for final consumption. It also includes the manufacture of similar products from other materials, including products (except apparel) made from "leather substitutes," such as rubber, plastics, or textiles It includes dyeing or dressing furs.
321 Wood Product Manufacturing......................................................................... 15
The production processes of the Wood Product Manufacturing sub sector include sawing, planing, shaping, laminating, and assembling of wood products starting from logs that are cut into bolts, or lumber that then may be further cut, or shaped by lathes or other shaping tools. The lumber or other transformed wood shapes may also be subsequently planed or smoothed, and assembled into finished products, such as wood containers.
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3221 Pulp, paper and paperboards mills................................................. 15
Personal property used in the manufacturing of pulp and involves separating the cellulose fibers from other impurities in wood or used paper. The manufacturing of paper involves matting these fibers into a sheet.
3222 Converted Paper Product Manufacturing ...................................... 15
Personal property used in the manufacture of paperboard containers including corrugating, cutting, and shaping machinery to form paperboard into containers. Paper bag and coated and treated paper manufacturing establishments cut and coat paper and foil. Stationery product manufacturing establishments make a variety of paper products used for writing, filing, and similar applications. Other converted paper product manufacturing includes, in particular, the conversion of sanitary paper stock into such things as tissue paper and disposable diapers.
323 Printing and related support activities............................................................. 15
Personal property including presses, used to transfer an image from a plate, screen, film, or computer file to some medium, such as paper, plastics, metal, textile articles, or wood. The most prominent of these methods is to transfer the image from a plate or screen to the medium (lithographic, gravure, screen, and flexographic printing). When publishing and printing are done in the same establishment, the establishment is classified under Industry Code 51, Information.
Itemized Equipment
Digital or non-impact printing equipment ..............................................................................5
(Uses a computer file to directly “drive” the printing mechanism to create the image)
Blue Print Machines ...........................................................................................................15
324 Petroleum and Coal Products Manufacturing ................................................. 20
Personal property used to transform crude petroleum and coal into usable products. The dominant process is petroleum refining that involves the separation of crude petroleum into component products through such techniques as cracking and distillation. Products such as asphalt coatings and petroleum lubricating oils are made.
25
3251 Basic Chemical Manufacturing ..................................................... 15
Personal property used in both basic chemical processes, such as thermal cracking and distillation, and in petrochemical processes, such as (1) manufacturing acyclic (i.e., aliphatic) hydrocarbons such as ethylene, propylene, and butylenes made from refined petroleum or liquid hydrocarbon and/or (2) manufacturing cyclic aromatic hydrocarbons such as benzene, toluene, styrene, xylene, ethyl benzene, and cumene made from refined petroleum or liquid hydrocarbons.
3254 Pharmaceutical and Medicine Manufacturing.............................. 15
Personal property used in one or more of the following: (1) manufacturing biological and medicinal products; (2) processing (i.e., grading, grinding, and milling) botanical drugs and herbs; (3) isolating active medicinal principals from botanical drugs and herbs; and (4) manufacturing pharmaceutical products intended for internal and external consumption in such forms as ampoules, tablets, capsules, vials, ointments, powders, solutions, and suspensions.
3255 Paint, Coating, and Adhesive Manufacturing ............................... 15
Personal property used to (1) mix pigments, solvents, and binders into paints and other coatings, such as stains, varnishes, lacquers, enamels, shellacs, and water repellant coatings for concrete and masonry, and/or (2) manufacture allied paint products, such as putties, paint and varnish removers, paint brush cleaners, and frit.
326 Plastics and Rubber Products ........................................................................ 15
3261 Plastics Product Manufacturing .................................................... 15
Personal property used in processing new or spent (i.e., recycled) plastics resins into intermediate or final products, using such processes as compression molding; extrusion molding; injection molding; blow molding; and casting.
Itemized Equipment
Personal property used in the industry group comprised of establishments primarily engaged in processing natural, and synthetic or reclaimed rubber materials into intermediate or final products using processes such as vulcanizing, cementing, molding, extruding, and lathe-cutting.
Itemized Equipment
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327 Nonmetallic Mineral Product ......................................................................... 20
Personal property used to transform mined or quarried nonmetallic minerals, such as sand, gravel, stone, clay, and refractory materials, into products for intermediate or final consumption. Processes used include grinding, mixing, cutting, shaping, and honing.
3271 Clay Product and Refractory Manufacturing ................................. 15
Personal property used in shaping, molding, glazing, and firing pottery, ceramics, and plumbing fixtures made entirely or partly of clay or other ceramic materials.
3272 Glass and Glass Product Manufacturing........................................ 15
Personal property used in manufacturing glass and/or glass products. Establishments in this industry may manufacture glass and/or glass products by melting silica sand or cullet, or purchasing glass.
Itemized Equipment
Itemized Equipment
Portable ready-mix plants ..............................................................................15 3274 Lime & Gypsum Product Manufacturing ...................................... 20
Personal property used in manufacturing lime from calcitic limestone, dolomitic limestone, or other calcareous materials, such as coral, chalk, and shells. Lime manufacturing establishments may mine, quarry, collect, or purchase the sources of calcium carbonate.
3279 Abrasive Product Manufacturing ................................................... 20
Personal property used in manufacturing abrasive grinding wheels of natural or synthetic materials, abrasive-coated products, and other abrasive products.
327991 Cut Stone and Stone Product Manufacturing ................................ 15
Personal property used in cutting, shaping, and finishing granite, marble, limestone, slate, and other stone for building and miscellaneous uses. Stone product manufacturing establishments may mine, quarry, or purchase stone.
331 Primary Metal Manufacturing.......................................................................... 20
Personal property used to smelt and/or refine ferrous and nonferrous metals from ore, pig or scrap, using electrometallurgical and other process metallurgical techniques. Metal alloys and super alloys are also manufactured by introducing other chemical elements to pure metals. The output of smelting and refining, usually in ingot form, is used in rolling,
27
drawing, and extruding operations to make sheet, strip, bar, rod, or wire, and in molten form to make castings and other basic metal products.
Includes:
3311 Iron and Steel Mills and Ferroalloy Manufacturing Itemized Equipment
Special Tools ...................................................................................................................... 7
332 Fabricated Metal Product Manufacturing ....................................................... 15
Personal property is used to transform metal into intermediate or end products, other than machinery, computers and electronics, and metal furniture or treating metals and metal formed products fabricated elsewhere. Important fabricated metal processes are forging, stamping, bending, forming, and machining, used to shape individual pieces of metal; and other processes, such as welding and assembling, used to join separate parts together.
Itemized Equipment
333 Machinery Manufacturing................................................................................ 15
Personal property used to create end products that apply mechanical force, for example, the application of gears and levers, to perform work. Some important processes for the manufacture of machinery are forging, stamping, bending, forming, and machining that are used to shape individual pieces of metal. Processes, such as welding and assembling are used to join separate parts together. Although these processes are similar to those used in metal fabricating establishments, machinery manufacturing is different because it typically employs multiple metal forming processes in manufacturing the various parts of the machine.
333314 Optical Instrument and Lens Manufacturing ................................ 15
Personal property used in: (1) manufacturing optical instruments and lens, such as binoculars, microscopes (except electron, proton), telescopes, prisms, and lenses (except ophthalmic); (2) coating or polishing lenses (except ophthalmic); and (3) mounting lenses (except ophthalmic).
334 Computer and Electronic Product Manufacturing ...........................................7
Personal property used in the manufacture of computers, computer peripherals, communications equipment, and similar electronic products and components. The design and use of integrated circuits and the application of highly specialized miniaturization technologies are common elements in the production technologies of the computer and electronic industry.
28
Personal property used in manufacturing and/or assembling electronic computers, such as mainframes, personal computers, workstations, laptops, and computer servers; and computer peripheral equipment, such as storage devices, printers, monitors, input/output devices and terminals.
Personal property used in manufacturing wire telephone and data communications equipment. These products may be standalone or board- level components of a larger system. Examples of products made by these establishments are central office switching equipment, cordless telephones (except cellular), PBX equipment, telephones, telephone answering machines, LAN modems, multi-user modems, and other data communications equipment, such as bridges, hubs, routers, and gateways.
3343 Audio and Video Equipment Manufacturing ............................... 10
Personal property used in manufacturing electronic audio and video equipment for home entertainment, motor vehicle, public address and musical instrument amplifications. Examples of products made include video cassette recorders, televisions, stereo equipment, speaker systems, household-type video cameras, jukeboxes, and amplifiers for musical instruments and public address systems.
3344 Semiconductor and Other Electronic Components ........................ 5
Personal property used in manufacturing semiconductors and other components for electronic applications. Examples of products made by these establishments are capacitors, resistors, microprocessors, bare and loaded printed circuit boards, electron tubes, electronic connectors, and computer modems.
Includes:
3345 Navigation, Measuring, Medical, Control Instrument Manufacturing .................................................................................. 7
Personal property used in manufacturing navigational, measuring, electro medical, and control instruments. Examples of products made by these establishments are aeronautical instruments, appliance regulators and controls (except switches), laboratory analytical instruments, navigation and guidance systems, and physical properties testing equipment.
335 Electrical Equipment, Appliance, and Component Manufacturing .............. 15
Personal property used to manufacture products that generate, distribute and use electrical power, such as electric lamp bulbs, lighting fixtures, small and major electrical appliances,
29
electric motors, generators, transformers, switchgear apparatus, devices for storing electrical power (e.g., batteries), for transmitting electricity (e.g., insulated wire), and wiring devices (e.g., electrical outlets, fuse boxes, and light switches).
336 Transportation Equipment Manufacturing ................................................... 15
Personal property used in production processes similar to those of other machinery manufacturing establishments - bending, forming, welding, machining, and assembling metal or plastic parts into components and finished products.
The section includes:
3363 Motor Vehicle Parts Manufacturing
3365 Railroad Rolling Stock Manufacturing 3364 Aerospace Product and Parts Manufacturing ............................... 15
Personal property used in one or more of the following: (1) manufacturing complete aircraft, missiles, or space vehicles; (2) manufacturing aerospace engines, propulsion units, auxiliary equipment or parts; (3) developing and making prototypes of aerospace products; (4) aircraft conversion (i.e., major modifications to systems); and (5) complete aircraft or propulsion systems overhaul and rebuilding (i.e., periodic restoration of aircraft to original design specifications).
This section includes:
336412 Aircraft Engine and Engine Parts Manufacturing 337 Furniture and Related Product Manufacturing ............................................. 10
Personal property used to make furniture and related articles, such as mattresses, window blinds, cabinets, and fixtures. The processes used in the manufacture of furniture include the cutting, bending, molding, laminating, and assembly of such materials as wood, metal, glass, plastics, and rattan.
339 Miscellaneous Manufacturing......................................................................... 15
Personal property used in the manufacture of products as diverse as medical equipment and supplies, jewelry, sporting goods, toys, and office supplies.
33991 Jewelry and Silverware Manufacturing .......................................... 15
Personal property used in: (1) manufacturing, engraving, chasing, or etching jewelry; (2) manufacturing metal personal goods (i.e., small articles carried on or about the person, such as compacts or cigarette cases); (3) manufacturing, engraving, chasing, or etching precious metal solid, precious metal clad, or pewter cutlery and flatware; (4) manufacturing, engraving, chasing, or etching personal metal goods (i.e., small articles carried on or about the person, such as compacts or cigarette cases); (5) stamping coins; (6) manufacturing
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unassembled jewelry parts and stock shop products, such as sheet, wire, and tubing; (7) cutting, slabbing, tumbling, carving, engraving, polishing, or faceting precious or semiprecious stones and gems; (8) re-cutting, re- polishing, and setting gem stones; and (9) drilling, sawing, and peeling cultured and costume pearls.
4 2 W H O L E S A L E T R A D E
421 Wholesale Trade Fixtures and Equipment ...................................................... 15
Trade fixtures (as opposed to fixtures) and equipment are used in establishments engaged in wholesaling merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. Wholesalers sell merchandise to other businesses and normally operate from a warehouse or office.
See also separate listings for specific types of equipment.
4 4 R E T A I L T R A D E
Includes the personal property for the following:
441 Motor Vehicle and Parts Dealers ..................................................................... 15
442 Furniture and Home Furnishing Stores........................................................... 15
443 Electronics and Appliance Stores..................................................................... 15
445 Food and Beverage Stores (including Convenience Stores)............................ 15
446 Health and Personal Care Stores...................................................................... 15
447 Gasoline Stations .............................................................................................. 15
452 General Merchandise Stores............................................................................. 15
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4 8 T R A N S P O R T A T I O N A N D W A R E H O U S I N G
481 Air Transportation ........................................................................................... 20
Itemized Equipment
Personal property used in providing inland water transportation of passengers and/or cargo on lakes, rivers, or intracoastal waterways.
484 Truck Transportation ..................................................................................... 10
Personal property includes equipment used in Transit and Ground Passenger Transportation. This industry includes a variety of passenger transportation activities, such as urban transit systems; chartered bus, school bus, and interurban bus transportation and taxis.
Itemized Equipment
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492 Couriers and Messengers ................................................................................. 15
Personal property used in the provision of intercity and/or local delivery of parcels. These articles can be described as those that may be handled by one person without using special equipment. Messengers, which usually deliver within a metropolitan or single urban area, may use bicycle, foot, small truck, or van.
493 Warehousing and Storage ................................................................................ 15
Personal property used in operating warehousing and storage{XE “storage:} facilities for general merchandise, refrigerated goods, and other warehouse products. These establishments provide facilities to store goods. They do not sell the goods they handle.
5 1 I N F O R M A T I O N
511 Publishing Industries ....................................................................................... 15
Personal property used in the publishing of newspapers, magazines, other periodicals, and books, as well as directory and mailing list and software publishing.
512 Motion Picture Production & Sound Recording .............................................. 7
Personal property used in the production and/or distribution of motion pictures, videos, television programs, or commercials; in the exhibition of motion pictures; or in the provision of postproduction and related services. Sound recording machinery and equipment is used in producing and distributing musical recordings, in publishing music, or in providing sound recording and related services.
512131 Motion Picture Theaters ................................................................ 15
Includes projection equipment, furniture and trade fixtures.
515 Broadcasting and Telecommunications ..................................... See Categories
51511 Radio Broadcasting ........................................................................ 10
Personal property used in broadcasting audio signals. These establishments operate radio broadcasting studios and facilities for the transmission of aural programming by radio to the public, to affiliates, or to subscribers. In recognition of the FCC change from analog to digital broadcasting equipment in radio, television, and cable industries, all analog equipment MAY be valued using a seven-year life. All other equipment will remain at the life indicated. The assessor will still be responsible for measuring obsolescence if any.
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51512 Television Broadcasting ................................................................ 10
Personal property used in broadcasting images together with sound. These establishments operate television broadcasting studios and facilities for the programming and transmission of programs to the public. In recognition of the FCC mandated change from analog to digital broadcasting equipment in radio, television, and cable industries, all analog equipment MAY be valued using a three-year life. All other equipment will remain at the life indicated. The assessor will still be responsible for measuring obsolescence if any.
Itemized Equipment
Wired telecommunications personal property used in (1) operating and maintaining switching and transmission facilities to provide point-to-point communications via landlines, microwave, or a combination of landlines and satellite linkups or (2) furnishing telegraph and other non-vocal communications using their own facilities. Wireless telecommunications assets are used in operating and maintaining switching and transmission facilities that provide omni-directional communications via airwaves, such as cellular telephone or paging services.
Itemized Equipment
Computer-based switching equipment ................................................................................ 5
Fiber optic cable ............................................................................................................... 15
Cellular Telephones............................................................................................................. 3
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517510 Cable and Other Program Distribution...... See itemized equipment
Personal property used in distribution systems for broadcast programming. Head end assets are defined as the electronic control center -- generally located at the antenna site of a CATV system -- usually including antennas, preamplifiers, frequency converters, demodulators, modulators and other related equipment which amplify, filter and convert incoming broadcast TV signals to cable system channels. Microwave systems include assets such as antennas, transmitting and receiving equipment, and broad band microwave assets. Program origination equipment includes assets such as cameras, film chains, video tape recorders, lighting, and remote location equipment excluding vehicles. Service and test assets include oscilloscopes, field strength meters, spectrum analyzers, and cable testing equipment. Subscriber connection and distribution systems include assets such as trunk and feeder cable, connecting hardware, amplifiers, power equipment, passive devices, directional taps, pedestals, pressure taps, drop cables, matching transformers, multiple set connector equipment, and converters. In recognition of the FCC mandated change from analog to digital broadcasting equipment in radio, television, and cable industries all analog equipment MAY be valued using a seven-year life. All other equipment will remain at the life indicated. The assessor will still be responsible for measuring obsolescence if any.
Itemized Equipment
Fiber Optic Cable .......................................................................................... 15
Head end Equipment, except towers............................................................. 10
Program Origination Equipment .................................................................... 10
Box converters having specialized computer components.............................. 3
Service and Test Equipment ......................................................................... 10
Subscriber Connection and Distribution Systems.......................................... 10
518 Internet Service Providers, Web Search Portals, and Data Processing Services
For life expectancy, please see Special Properties
Personal property assets used by Internet Service Providers, Web Search Portals, and Data Processing Services to provide: (1) access to the Internet; (2) search facilities for the Internet; and (3) data processing, hosting, and related services.
* Additional analysis for obsolescence may be necessary for coaxial cable located outside and subject to extreme environmental conditions.
35
519 Other Information Services ............................................................................. 15
Personal property assets used in supplying information, storing information, providing access to information, and searching and retrieving information. The main components of this group are news syndicates, libraries, and archives. It includes law and medical libraries.
5 3 R E A L E S T A T E , R E N T A L , A N D L E A S I N G
532 Rental and Leasing Services ............................................................................ 15
Personal property includes a wide array of tangible goods, such as automobiles, computers, consumer goods, and industrial machinery and equipment, to customers in return for a periodic rental or lease payment.
Itemized Equipment
Furniture Rental & Leasing ................................................................................................. 7
See also separate listings for specific types of equipment.
5 4 P R O F E S S I O N A L , S C I E N T I F I C , A N D T E C H N I C A L S E R V I C E S
- See itemized equipment
Medical and law libraries (See also other information services)........................................ 15
Photography ..................................................................................................................... 15
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Professional and scientific equipment (See also NAICS Code 3345).................................. 7
Professional libraries ......................................................................................................... 15 Surveying equipment
GPS......................................................................................................................................7
Non-GPS ...........................................................................................................................15
Assets include burglar and fire alarms and locking devices, along with equipment necessary for installation, repair, or monitoring services or (2) remote monitoring of electronic security alarm systems.
Itemized Equipment
Safes and security vaults ..................................................................................................20
5 6 W A S T E M A N A G E M E N T A N D R E M E D I A T I O N S E R V I C E S
5616 Investigation and Security Services ................................................ 15
Personal property includes burglar and fire alarms and locking devices, along with equipment necessary for installation, repair, or monitoring services or (2) remote monitoring of electronic security alarm systems.
Itemized Equipment
56171 Exterminating and Pest Control Services 56172 Janitorial Services 56173 Landscaping Services 56174 Carpet and Upholstery Cleaning Services Itemized Equipment
Carpet Cleaning ............................................................................................15
37
562 Waste Management and Remediation Services .............................................. 10
Personal property used in the collection, treatment, and disposal of waste materials. This includes establishments engaged in local hauling of waste materials; operating materials recovery facilities (i.e., those that sort recyclable materials from the trash stream); providing remediation services (i.e., those that provide for the cleanup of contaminated buildings, mine sites, soil, or ground water); and providing septic pumping and other miscellaneous waste management services.
Itemized Equipment
Portable toilets .................................................................................................................. 10
6 2 H E A L T H C A R E A N D S O C I A L A S S I S T A N C E
621 Ambulatory Health Care Services .................................................................... 15
Personal property used by health practitioners in the provision of outpatient services, with the facilities and equipment not usually being the most significant part of the production process. Includes the fixtures and equipment for the following:
6211 Offices of Physicians
6212 Offices of Dentists
All Portable Units of Same
Angiographic X-ray units
Chest X-ray Units
Dental X-ray Units
Personal property used to provide inpatient health services, particularly specialized facilities and equipment that form a significant and integral part of the production process. See list above for examples of equipment.
See also Special Properties for Medical Diagnostic and Medical Lab.
6244 Child Day Care Facilities................................................................ 10
Personal property used in providing day care of infants or children.
7 1 A R T S , E N T E R T A I N M E N T , A N D R E C R E A T I O N
711 Performing Arts, Spectator Sports, and Related ............................................. 10
Includes projection equipment, furniture and fixtures.
Itemized Equipment
Support operations, including ticket booths, snack bars, offices ..................................... 157
Water tanks ..................................................................................................................... 208 711212 Car racing – race cars....................................................................... 3
713 Amusement, Gambling and Recreation Industries ......................................... 15
Personal property used to (1) operate facilities where patrons can primarily engage in sports, recreation, amusement, or gambling activities and/or (2) provide other amusement and recreation services, such as supplying and servicing amusement devices in places of business operated by others; operating sports teams, clubs, or leagues engaged in playing games for recreational purposes; and guiding tours without using transportation equipment.
Itemized Equipment
Bowling Electronic Scoring Machines ..................................................................................7 Gaming Equipment: Electronic, slots, or computers ............................................................................................ 7
7 May be considered to be real property fixtures. The cost may be established from Marshall/Swift. 8 May be considered to be real property fixtures. The cost may be established from Marshall/Swift.
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Golf Course: Lawn Mowing Equipment............................................................................... 7
Ski Rentals.......................................................................................................................... 7
Video and Flipper Games ................................................................................................... 7
7 2 A C C O M M O D A T I O N A N D F O O D S E R V I C E S
721 Accommodation............................................................................................... 15
Itemized Equipment
Heavy use Washers............................................................................................................ 7
Televisions.......................................................................................................................... 5
722 Food Services and Drinking Places.................................................................. 15
The industry groups are full-service restaurants; limited-service eating places; special food services, such as food service contractors, caterers, and mobile food services; and drinking places.
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Itemized Equipment
Linens, glassware, silverware, and uniforms (not rented).................................................... 3
Televisions, Digital .............................................................................................................. 5
Televisions, Analog ............................................................................................................. 5
Vending Machines..............................................................................................................15
8 1 O T H E R S E R V I C E S ........................................................................................................................15
Establishments in this sector are primarily engaged in activities, such as equipment and machinery repairing, promoting or administering religious activities, grant making, advocacy, and providing dry cleaning and laundry services, personal care services, death care services, pet care services, photofinishing services, temporary parking services, and dating services.
811 Repair and Maintenance ................................................................................. 15
Personal property used to restore machinery, equipment, and other products to working order. These establishments also typically provide general or routine maintenance (i.e., servicing) on such products to ensure they work efficiently and to prevent breakdown and unnecessary repairs.
Includes the fixtures and equipment for the following:
8111 Automobile Repair and Maintenance
811192 Car Washes
8114 Personal and Household Goods Repair and Maintenance
81143 Footwear and Leather Goods Repair Itemized Equipment
Auto Repair Diagnostic Equipment (Electronic)................................................................... 7
Welding Equipment ........................................................................................................... 15
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41
812 Personal and Laundry Services........................................................................ 15
Includes the equipment and some trade fixtures for the following (See Appendix D for determination of real or personal property):
8121 Personal Care

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